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Wednesday, May 03, 2006 

"Pirates were faking the entire company"

Next Interesting story from the New York Times on how pirates are faking not just products but the entire business operation of NEC. Reminds me that I should start tagging tales of unethical business practices in China...
"After two years and thousands of hours of investigation in conjunction with law enforcement agencies in China, Taiwan and Japan, the company said it had uncovered something far more ambitious than clandestine workshops turning out inferior copies of NEC products.

The pirates were faking the entire company.

Evidence seized in raids on 18 factories and warehouses in China and Taiwan over the past year showed that the counterfeiters had set up what amounted to a parallel NEC brand with links to a network of more than 50 electronics factories in mainland China, Hong Kong and Taiwan.

Using the company name, the pirates copied NEC products, and went as far as developing their own range of consumer electronic products — everything from home entertainment centers to MP3 players. They also coordinated manufacturing and distribution, collecting all the proceeds. The actual NEC even received complaints about products — which were of generally good quality — that they did not make or provide with warranties."

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